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>> If the outcome is that they have predicted the market, then that is prediction, even if some of it was influence. Fred is not in charge and he has a chance o
by andrewstuart 4y ago
>> If the outcome is that they have predicted the market, then that is prediction, even if some of it was influence. Fred is not in charge and he has a chance of being wrong: you pointed out that no-one knows so I think you even contradict yourself.
It's price anchoring - a message to the startups that ask him for money, it sets in advance the expectations for how much money their startup is worth even before they meet.
https://en.wikipedia.org/wiki/Anchoring_(cognitive_bias) https://en.wikipedia.org/wiki/Anchoring_(cognitive_bias)
http://changingminds.org/disciplines/marketing/pricing/price_anchoring.htm http://changingminds.org/disciplines/marketing/pricing/price...
- robocat 4y agoNo. Only if he were the single VC with near market dominance, however he absolutely is not. Fred influences by his words, but he is not setting the market price. He influences for reasons of his own hidden incentives, but he doesn’t control. He is predicting what other VCs will do.
- thenerdhead 4y agoInfluencers influence markets. That’s his point. Doesn’t mean it comes true, but it can influence it.
- andrewstuart 4y ago>> he is not setting the market price. That's not what price anchoring is. In this case, the price anchoring is relevant only when a startup walks in the door of Freds office (figuratively speaking) and asks for money. He is anchoring the price not to many people, but to people who come asking him for money.